Government to government (G2G) contracting is our signature approach to connecting qualified Canadian businesses with foreign government buyers.
What is G2G contracting?
Government to government (G2G) contracts, also known as intergovernmental contracts, are agreements between government entities for the purchase of products, services, or solutions.
G2G contracts are often used for the purchase of goods and services of national security and importance, such as the purchase of aircraft or agricultural products. They can also be used for public work contracts, such as the construction of airports, hospitals and water sanitation systems.
The G2G contracting approach is unique in that instead of having an agreement with a company for the supply of a product, service, or project, a government buyer has a commercial agreement with another government entity to deliver on the requirement.
This has the benefits of increasing bilateral relationships, reducing procurement risk and increasing the number of bankable projects of national or sub-national importance.
Best use of G2G
The G2G contracting solution is an alternative procurement strategy that can be used by foreign governments within the bounds of national procurement laws. Procurements best suited to the G2G contracting approach include projects:
- Identified as urgent and compelling such procurements for emergency response or procurements on critical deadlines
- That might lack of government procurement capacity to be delivered successfully
- That might have issues of bribery and corruption that put project outcomes at risk
- That have already had a failed competitive procurement process and future competitive processes are likely to yield similar results.
G2G contracting is a low-risk way for companies and governments to do business. It minimizes the political, business and payments risks exporters can face when doing business with a foreign government. It also greatly reduces the procurement contracting risks faced by foreign government buyers.
G2G for government buyers
Deepens relationships between nations
Commercial relationships forged with G2G contracts helps to deepen bilateral relations between countries.
Reduces risks
Depending on how the contract is structured, G2G contracts can reduce procurement and supply chain by increasing the number of potential suppliers. With national oversight, G2G also often reduces bribery and corruption risks that are often present in large-scale or projects of importance.
Attracts financing options
Since many G2G contracts are vetted at a national level, they are more likely to attract financing which increases the number or pipeline of bankable projects.
G2G for businesses
Elevates commercial opportunities to a government level
G2G contracts often leverage government advocacy and support to open doors and level the playing field.
Reduces risks
Since G2G contracts are agreements between nations, they reduce the impact due to changes in laws, regulations, and policies resulting from changes in foreign ownership level and taxation rules. They also provide protection from predatory terms and conditions and elevate disputes to the national level and reduce reputational risks associated with working with bad actors in foreign governments.
Reduces payment risks
Since G2G contract projects and terms are endorsed at a national level, they are more likely to attract different financing options.
Canada's approach to G2G
G2G eligibility for buyers
Canada can enter into a contract with most sovereign governments for the sale of Canadian solutions. We work with all levels of government including national, provincial/state, and municipal governments that can:
- Enter into G2G agreements.
- Budget or finance G2G projects.
- Align themselves with the Government of Canada’s human rights standards.
G2G eligibility for Canadian companies
Canadian businesses looking to participate in G2G contracts (outside of the U.S. military) must have the capacity to meet the procurement and project needs of the government buyer and pass our financial, managerial, technical, and integrity compliance and human rights assessments.
Other criteria we look for are:
- A track record of selling internationally, especially into similar markets
- Past sales directly to international government entities
- Priority set on selling internationally as a key component to grow sales
- Existence of local staff, partners, or representation
For Canadian businesses looking to participate in G2G contracts with the U.S. military, we are looking for Canadian businesses that have solutions to meet both traditional military and non-military needs of the U.S. DoD. Companies will be required to:
- Register with the U.S. DoD
- Complete a financial, managerial, and technical due diligence review
- Undergo an integrity compliance and human rights assessment
- Work through CCC for bid or proposal submissions to U.S. DoD
Sectors
Typically large-scale projects in major sectors qualify for government to government contracting with Canada. This includes aerospace, defence, cleantech, infrastructure, and information and communication technology (ICT).
However, that is not always the case. G2G contracts are also used for the purchase of goods and services of national importance or because a government buyer specifically requests a government to government contract.
What makes Canada’s G2G unique?
Many governments offer G2G acquisitions but Canada’s offerings are unique.
We do rigorous due diligence on our Canadian businesses with integrity, technical, managerial, and financial assessments to ensure the proposed Canadian supplier can successfully deliver.
We take an active role including overseeing the performance of the contract.
We offer a guarantee of contract performance on all our G2G contracts reducing procurement risk and promoting acquisitions from Canada
As prime contractor, we offer a Government of Canada assurance that the contract will be completed as per the agreed terms and conditions.
Canada's G2G success examples
Are you a foreign government buyer looking for a Canadian solution?
Canada's G2G track record
55
Countries that engaged in G2G contracts with Canada (2014-2024)
$29B
Value of G2G contracts between Canada and other nations (2014-2024)
G2G contract support
Where to find government opportunities
Government procurement opportunities are generally posted on online portals for bidding companies to review, register and respond. To help Canadian businesses access more global opportunities and to help government buyers receive bids from Canadian companies, Canada offers a portal called the Global Bid Opportunity Finder (GBOF).
The single sign-on portal provides access to bid opportunities from over thirty sources in over 200 jurisdictions. Five thousand new opportunities are added to the portal daily. Examples of portals whose procurement opportunities are aggregated into GBOF include SAM.gov (U.S), Contracts Finder (UK), AusTender (Australia), TED (Europe), and JETRO (Japan).
Advisory services
We support Canadian businesses that are looking to sell internationally. Whether is an active sales opportunity in hand or not, we can provide advice on how Canadians can take the next step to sell to foreign governments.
Canada’s G2G services
We support Canadian businesses and government buyers through our International Prime Contractor service where we create government to government (G2G) contracts that connect foreign government buyers with Canadian businesses for public sector contract opportunities.
Our U.S. DoD Prime Contractor service is designed to help Canadians sell to the U.S. military. Any procurement opportunities over USD$250,000 in value between Canada and the U.S. DoD must go through this service.
